GEO Group Inc. (GEO) Surged To A New High On REIT News

1/22/2013 6:59 AM ET

GEO Group Inc. (GEO) announced Friday morning that it has received a favorable private letter ruling from the IRS in connection with GEO's previously announced conversion to a real estate investment trust. GEO's Board of Directors has authorized the Company to elect REIT status effective January 1, 2013.

The Board also declared GEO's first ever quarterly cash dividend as a REIT of $0.50 per share of common stock.

GEO Group gapped up Friday and spiked higher in early trade. The stock was range-bound for the remainder of the day and closed up by 2.03 at $32.75 on above average volume. GEO Group broke out past resistance and set a new high for the year.